Probabilistic Time Scheduling Model for Exponentially Decaying Inventory under Temporary Price Discount

Abstract A probabilistic model for exponentially decaying inventory when supplier announces a temporary price discount for a short time period is considered. Units purchased before or after the period under review will be available at the current price which is higher than the special discount price. In any case it is assumed that the selling price of the units remains fixed. The problem is to determine an extra large quantity to be procured during the lime period in which a special discount is available. This is one time decision problem. Appropriate formulae have been obtained to determine the large quantity to be procured before the price becomes original.